Audit Board of the Republic of Indonesia (CPC) is a high state institution in the Indonesian state administration system that has the right to / authority to check management & state financial responsibility. For more details, see our discussion on the Duties and Authorities of BPK, Definition, Legal basis, Right, Functions below.

What is CPC?

Audit Board of the Republic of Indonesia (CPC) is a high state institution in the Indonesian state administration system that has the right to / authority to check management & state financial responsibility.

The Financial Audit Board is classified as an independent and free institution, which the statement has been stated in the Constitution of 1945.

For the members themselves, BPK members are elected by the House of Representatives (DPR) while still taking into account the Regional Representative Council (DPD) then later inaugurated by the Head of State / President.

Self formation, this institution has a history and is also intended to have the duties and authorities of the Supreme Audit Agency.

Task and Authority of BPK

Duties and powers of BPK (Audit Board of the Republic of Indonesia) has been stated in the Law of the Republic of Indonesia No. 15 year 2006 separately, namely in CHAPTER III the 1st part and the second 2nd part. Then what are the duties and authorities of the BPK??

CPC Tasks

Duties and Authorities of the BPK (Financial Audit Agency) based on the Act, it is included in part 1, which contents are as follows :

1. Management check & the financial responsibility carried out by the Audit Board is only limited to the Central Government, Bank Indonesia, Local government, Other State Institutions, State Owned Enterprises (BUMN), Public service agency, Regional owned enterprises (BUMD), and all other institutions that have responsibility for managing state finances.
2. The audit of the Supreme Audit Agency is carried out in accordance with the law on management audits & state financial responsibility.
3. Examinations conducted by the Supreme Audit Agency include performance checks, and finance, even inspection with a specific purpose.
4. The results of the audits that have been carried out by the State Audit Board must be re-discussed in accordance with the established state financial audit standards.
5. Management inspection results & responsibility for state finances is handed over to the DPD, DPR, & DPRD. And submit the results of the examination in writing to the Head of State / President, Governor, & Regent/Mayor.
6. When it is proven that there is a criminal act, then the State Audit Board is obliged to report it to the competent and authorized agency no later than 1 months from the date the criminal act was discovered.

Authority CPC

Duties and Authorities of the BPK (Audit Board of the Republic of Indonesia) based on the Law of the Republic of Indonesia No. 15 Year 2006 CHAPTER III the second part of which is as follows.

1. In performing his duties, The Supreme Audit Agency has the authority to determine the object of audit, planning and carrying out inspections. Determining the time and system or method of examination as well as compiling and presenting reports are the authority of the Supreme Audit Agency.
2. All data, information, and files and all matters related to management & State financial responsibility is only as a means for examination material.
3. The Supreme Audit Agency also has the right and authority to give opinions to the DPR, DPD, and DPRD, as well as all other state financial institutions that are really needed in supporting the nature of the work of the Supreme Audit Agency.
4. The State Audit Board has the right and authority to provide advice and opinions related to the consideration of resolving state losses.

Read Also : Duties and Authority of the MPR

BPK Legal Basis

Existence of the Supreme Audit Agency (CPC) first determined by the Basic Law of the Year 1945. In chapter 23 verse (5) Year Constitution 1945 contain the following mandate :

“To examine the responsibility for state finances, a BPK is held (Audit Board of the Republic of Indonesia), whose rules have been established by law“.

The existence of this article shows that from the start,, Founders of the Republic of Indonesia (RI) have realized that in order to establish a responsible government, a CPC is needed (Audit Board of the Republic of Indonesia).

Therefore, the law contains provisions requiring the establishment of the Supreme Audit Agency as a state institution tasked with examining management & responsibility for state finances.

The laws that are used as the legal basis or basis as well as the operational basis of the Supreme Audit Agency in carrying out their duties are as follows :

1. Basic Law of the Year 1945
2. Law Number. 17 Year 2003 about State Finance
3. Law Number. 1 Year 2004 about the National Treasury
4. Law Number 15 Year 2004 about Management Inspection &State Financial Responsibility
5. Law Number. 15 Year 2006 about the Supreme Audit Agency (CPC), which is a substitute for Law No. 5 Year 1973 about the Supreme Audit Agency (CPC)

Normo Law. 15 2006 has clearly stated that the Supreme Audit Agency must have a position as an independent audit agency, independent and professional.

This is very much needed in the context of efforts to create a government that is clean and free from corruption cases, collusion & nepotism.​

Read Also : Duties and Authority of the MPR

CPC Functions

• Checking Management and responsibilities regarding State finances

If it's like a company, Then the State becomes one of the very big companies, not? Of course big company, that generate a large number of transactions will require a special auditor.

So, This is where the BPK plays an important role for the State of Indonesia. BPK has a similar function as an auditor, which BPK has a function in conducting audits of the management and responsibility of state finances.

State finances, of course, have produced many kinds of transactions, and from these transactions, of course, they must be carried out with full responsibility. So this is where the Supreme Audit Agency plays a role in examining these activities.

• Supervise management & responsible for state finances

In addition to its very important function in conducting audits of management & responsibility regarding state finances, The Supreme Audit Agency also has other functions that are no less important.

Then what are the other functions of BPK?? namely carrying out the process of supervising management matters & responsibility for state finances.

Every management and use of state money must and really need to be supervised by the state financial institution itself.

That's our discussion of the material Duties and Authorities of the BPK. Also read our other articles about Material Local regulation. Thank you for visiting our website. May be useful.

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